Kaizen Continuous Improvement Philosophy

8/8/2019 Kaizen Continuous Improvement Philosophy

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GMP Quality Consultants, We turn Knowledge into PracticesGMP Quality Consultants, We turn Knowledge into PracticesQGMP1

The KAIZEN Challenge

GEMBA KAIZEN PHILOSPHY


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KAIKAI

ZENZEN

ChangeChange

Good(for the better)

Good(for the better)

KAIZEN = Continual ImprovementKAIZEN = Continual Improvement

Definition of KAIZENDefinition of KAIZEN


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KA

IZ

ENinvolves everyone top management, managersand workers of all levels.

continuous improvement

/ on-going improvement.

major part ofworking culture

Doing without realising it


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WHY and HOW did KAIZEN helped Japan

become A Major Global Player.

Business Environment Globally

In the 1960s and early 1970s, unprecedented growth with

tremendous demand for new technologies and new products.

Re-Engineering strategy shows best results

Rapidly expanding markets

Consumers more towards quantity than quality.

Products sell by themselves

There is abundant and low cost-resources

A belief that innovative products could offset sluggishperformance in traditional operations.

Management more concerned with increasing sales andmarket shares than with reducing cost.


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The new situation (70s) :

Cost of material, energy and labour - Sharp increases

Overcapacity of production facilities

Increased competition in saturated or dwindling

markets (sunset industries)

Consumer values demanding quality first The need to introduce new products more rapidly

The need to lower breakeven point

The oil crisis

in 1970s!!!!


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To a company, this meant

Increased cost of resources

Stiffer competition

Quality level achievement strategic to wincustomers

The need to develop customer-orientatedproducts and services fasterthan everbefore.

Delays in adopting the latest technologyare costly

Delays in adopting improved managementtechniques are costly

Japans KAIZEN Strategy was able to meet the challenges


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1. Need for high flexibility to respond tomarket changes and customersrequirements

2. Greater control for investments and theneed for high returns on investments

3. Faster life cycle of products4. Increasing cost pressure and price wars

5. Global relocation to countries of most-benefit, e.g. China

The Challenges Facing Us in the 21st Century

KAIZEN strategy can work for any companythat takes advantage of the Kaizen tools and

turn them into a competitive advantage.


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The Kaizen Strategy

No cultural factorsMany Japanese management strategies succeed

simply because they are good management practices.

Over the last thirty years, many companies in many

countries worldwide (including Malaysia Look East)have successfully adopted them.

The lack of cultural bias means that these practices

can be just as successfully implemented anywhere.

The difference is not one of nationalitybut one of mentality.


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Problem Recognition

o recognition that ANY and EVERY

company has problems in their

operations.

o corporate culture everyone canfreely admit these problems.

o problems become opportunities

for improvement and solutions.

o They will not be hidden, covered

up or neglected.


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Problem Solving

problems as opportunities for

improvements and solutions.

problems are collectiveresponsibilities to be solvedtogether.

Cross-functional problems(involving a few departments, suchas design or launching newproducts) in Western managementare seen in terms of conflict-resolution.

apply systematic and collaborativeapproach for cross-functionalproblem solving.


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Customer Driven

management must satisfy the customerand serve customers needs if it is to stayin business and make a profit.

Customers concerns include the critical

areas of cost, quality and scheduling.

All Kaizen activities should eventuallylead to increased customer satisfaction.

Customer is King


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ProcessOrientated

Everyone is involved in change every day

There will be no progress if you keep on doing

things exactly the same way all the time.

Kaizen generates a process-orientated way ofthinking

Management supports and acknowledges peoples

process-orientated efforts for improvement.

Contrast to Western management practice of reviewing peoples

performance strictly on the basis of results and not rewarding the effort

people make.


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KAIZEN is notTotal Corporate Strategy

Kaizen does not REPLACE Corporate Strategy.

e.g. considerations of Product design andmarketing strategy, innovations anddiversifications

Important for top management to always checkactual market conditions and trends, informationfrom customers and competitors.

Identify the trade cycles (cyclic conditions orproduct life cycles sunrise and sunset

industry/technology)


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Kaizen WORK CULTURE

CONTINUOUS IMPROVEMENTINVOLVES EVERYBODY

Re-Engineering - TECHNOLOGYDRIVEN

THRIVE ON HIGH and FAST

GROWTH IN ECONOMY

Kaizen Strategy Problem Recognition

Problem Solving

Customer Driven

ProcessOrientated

Part of Total Corporate Strategy

KEY POINTS


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5

KAIZEN

And

MANAGEMENT

Management has two components

Management works to MAINTAIN its operationsAnd

Management works to make IMPROVEMENTS


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Maintenance :

activities to maintain current technological,

managerial and operating standards

Management first establish policies, rules,

directives and procedures (Standard

Operation Procedures SOP)

Ensure compliance by workers.

Enforce through discipline if needed

Management provide training or review

Revise the standard so that people can

follow it.


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Kaizen :

Kaizen is incremental improvements that iscontinuous

Many small improvement steps lead to total bigstep

Improvements are made with little cost involved

It involves all the employees at all levels


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Improvement :

activities directed toward improving current standards.

Two components Re-ENGINEERING and KAIZEN

Re-ENGINEERING1.Involves a drastic improvement to current conditions

2.Large investment in new technology / equipment

3.Long periods in between these innovation jumps

4.Specialist and selected top people are involved only


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MAINTENANCE

And

IMPROVEMENT

WHERE TO DRAW THE LINE??

How much of your capability is used for each?And

How about the whole organisation?


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Top Management

Middle Management

Supervisors

Workers

Improvement

Maintenance

Responsibility and Contribution

All Job Functions has the two components


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Top Management

Middle Management

Supervisors

Workers

Improvement

Maintenance


GEMBA KAIZEN Perception of Job Function

KAIZEN

All levels of employees can do KAIZEN

Some will do Re-Engineering


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Top Management

Middle Management

Supervisors

Workers

Improvement

Maintenance


Western Perception of Job Function

Some will do Re-Engineering

All levels of employees do maintenance


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Kaizen

Nurtures small and

ongoing changes

(alive, like a flowering

plant)

Kaizen

Needs no large investment to implement

Needs continuous effort and commitment.


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KAIZENKAIZEN

Incremental But Continuous Progress


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GMP Quality Consultants, We turn Knowledge into PracticesGMP Quality Consultants, We turn Knowledge into PracticesQGMP

25

Re-Engineering - like a volcano that erupts in abrupt

explosions from time to time.

Ideal pattern the STEP

Time

Ex : Capacity for new machine 3000/day

Quality of new products when set up 10,000ppm

Reliability zero breakdown 30,000 hrs/mth

Sales volume 3 million pieces/month


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RERE--ENGINEERINGENGINEERING

THE IDEAL

Dramatic But

Intermittent

Progress

Higher StandardAchieved Through Re-engineering Is Subject

To Deterioration Unless Continuing EffortsAre Made First To

Maintain ItAnd Then To Improve It


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After implementation of a new system,

it starts to deteriorate

Actual pattern from Re-Engineering

Performance

Drops

Benefits ofRe-Engineering lost with time

Unless

Effort is made to MAINTAIN and IMPROVE thestandards

Time


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Time

Re-Engineering

What should be

(Standard)

Maintenance

Maintenance

What should be(Standard)

What actually is

Re-Engineering

Alone


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Time

Re-Engineering

Re-Engineeringplus KAIZEN

Re-Engineering

KAIZEN

KAIZEN

Kaizen - constant effort not only to maintain

but to upgrade standards

Everynew standard is temporary,

only a stepping stone to the next improved one.


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MAINTENANCE

RE-ENGINEERING

KAIZEN

MAINTENANCE

KAIZENKAIZEN PLUSPLUSRERE--ENGINEERINGENGINEERINGDesirable Progress By

Combination OfTwo

Opposing Methods

RE-ENGINEERING


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People are Biggest Assets

Kaizen depends on everyone

doing theirlittle bit

to move the mountain

Skills and Experience makes workers theexperts in their process

Investing in Kaizen means investing in people

Kaizen is people-orientated

In contrast innovation is technology-

and money-orientated.


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Emphasis Kaizen Re-engineering

Effect Long-term But Undramatic Short-term But Dramatic

Pace Small Steps Big Steps

Timeframe Continuous And Incremental Intermittent

Change Gradual And Constant Abrupt And Volatile

Approach Group Efforts Individual Ideas And Efforts

Involvement Everybody Selected Few

Mode Maintenance And Improvement Scrap And Build

Know-how Conventional Know-how Technological Breakthrough

Requirement Little Investment Large Investment

Orientation People Technology

Evaluation Process And Efforts Results For Profits

FeaturesOfKaizen vsRe-engineering


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Kaizen and QC

Quality Control (QC), the old view :

1. Inspection of finished goods andproducts.

2. Only concerned for product-quality control

3. This is the narrow viewpoint ofQC


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Quality Control in Gemba Kaizen

Quality Control - beyond prevention of defects from

reaching the customer.

Quality Control are the goals of the company :

To provide productsand

service

sthat satisfycustomer requirements and earn customer trust

Steer company towardshigher profitability by

improving internal management.

Prosperity to AllTogether.

Help employees fulfill theirpotential for achieving

the corporate goal through policy deployment and

voluntary activities.Mankichi Teteno (President of Japan Steel Works )


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Centered on improvement of managerial

performance at all levels, like :

quality assurance

cost reduction

meeting production quotas or targets

meeting delivery schedules safety

Human Resources development

new products development

productivity improvement supplier management

KAIZEN is the spirit of Quality Control


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Kaizen QualityImprovement Cycle.

Building quality into people means helping them becomeKAIZEN-conscious.

KAIZEN Quality Improvement Cycle is used irrespectiveof cross-functional or functional problems.

1

24

3

1. Identify the problem

3. Use problem-

solving tools for

counter-measures

2. Standardizeresults to

prevent re-occurrence

4. Identify

the next

problemto tackle


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Kaizen QualityImprovement Cycle.

Practice cycle continuously to builddiscipline

By going through these cycles continuously, it becomes a habit in action,

leading to habits in thinking and

finally people become Kaizen-minded

Quality Control thengoesbeyondprevention

ofdefects fromreaching the customer.


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1

23

4


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KEY KAIZEN CONCEPTS

UNDERSTANDING and PRACTISING

KAIZEN CULTURE

THROUGH

KAIZEN KEY PHRASES


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Speak with Data

Kaizen emphasises the use of data.

Every thing can be put down to a number (quantified)

and every number can be given a cost (costing).

We should talk with data and facts

When you see data, doubt it!

When you see the measuring instrument, doubt it!

When you see chemical analysis, test results, doubt it!

There are such things as false data, mistaken data andimmeasurable factors.

Kaoru Ishikawa (author Japanese Quality Control)


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Quality First, Not Profit First

Reflects the belief in

Quality forQualityssakeand

Kaizen forKaizenssake.

If you take care of the quality, the profits will take care ofthemselves.

Quality here refers to the broader meaning of quality,including quality assurance, cost reduction, efficiency,delivery and schedule, safety and employees morale, etc.

Seeking improvement for improvements sake is the surestway to strengthen their companies overall competitiveness.


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Managing the Previous Process

Go back to the previous process to seek the cause of a

problem at your process.

WHY did this problem reach my process?

Problem solving methods are used e.g. 5WHYs, 5W 1H,

Improvements comes from being aware of what comes

from the previous process.

YOU DO, I CHECK!

There should be no assumption of the quality that

reaches us. Gemba!


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The NextProcess is My Customer.

Process has become impersonalized. No feeling.

Neversenddefectiveparts to those in thefollowing process.

Be sincere enough to admitourownproblems

claim ownership of your process

Do everything in your powers tosolve them.

I DO, I CHECK

I am the managerofmy process.

Assuring quality to each customer at each stage willassure quality in the finished product


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Standardise the Results

Not every operation in a work process need to bestandardised.

Identify the critical elements that must be measured and

standardized :

cycle time, tact time, work sequence, pre-start

checklist and conditions, standard time.

Standards - binding on everyone.

Managements job is to ensure everyone works inaccordance with the established standards.

This is called Discipline


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Every worker is in gemba for at least eight hours

Everyone is always busy and working

People moving around in a hurry or with a purpose

How much of this time and energy is actually addingvalue?

MUDA means waste

There is a much deeper connotation

MUDA


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WHY is MUDA important?

Work is a series of processes or stepsStarting with raw material and ending with a

final product or service

At each process, value is added to theproduct or service

(In the service sector a document orother piece of information)

Then it is sent to the nextprocess

The resources at each process people and

machines either add value or it does not

MUDA is any activity that does not add value


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MUDA in gemba is classified into

the following seven categories:

MUDA ofoverproduction

MUDA ofinventory

MUDA ofrepairs / rejects

MUDA ofmotion

MUDA ofprocessing

MUDA ofwaiting

MUDA oftransport


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I. MUDA of OVERPRODUCTION

1. Usually start with the thinking of line supervisors

2. Worried about problems such as machine failure,rejects, absentism

3. Feels urgent need to produce more than necessary

just to be on the safe side4. Tries to get ahead of the planned production

schedule

5. With expensive machines, prioritise maximum andefficient use rather than the quantity required tofulfill sales requirements

6. Excess workers who may be idle, maximizeworkers efficiency


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Muda

What are the potential MUDA

due to theOverproduction ?

MUDAlead

s

to COST

& LOSS

ES


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Muda

Extra consumption of raw materials before actual

sales requirement

Usage of manpower and utilities (electricity,

overheads)

Diversion of machinery, even adding machinery to

increase capacity Increase in interest burden (cost of purchase)

Additional space to store excess inventory

Added transportation and administrative costs

Gives people a false sense of security

Helps cover up actual problems

Confuses data and information that can provide clues

for kaizen

Cost of production increase without increase of value

Potential of no sales turning into dead-stock


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II. MUDA ofINVENTORY

Inventories of Final products,

semi-finished products

(work-in-progress),

parts and supplies

All inventory does not add value.

Inventories just stay there and gather dust.

Inventory adds cost to operation


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III. MUDA of REPAIRS / REJECTS

Rejects interrupt production

(eg need for recovery)

require expensive rework

may have to be scrapped

waste of resources, effort

High speed production systems

may cause damage to expensive jigs andmachines

workers assigned just to monitor and stopthe machine when defects are detected.


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IV. MUDA of MOTION

Motion of a persons body that is not related to addingvalue

Walking : does not add value

Lifting : carrying or lifting heavy objects

Transferring :

pick up, transfer to another hand

(eg. Sewing, crimping process)

distance of parts and tools

Not following the standard process, worse cycle time

Actual motion of a worker that adds value to a productis usually a few seconds.


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IV. MUDA of MOTION

1. Identify actual value added motion and

- reduce the other muda of motion

2. Observe the way operators use their

a) Handsb) Legs

c) Head (including eyes)

d) Body (twist, lean, transfer position)

3. Re-arrange placement of parts / jigs / actuators(switches)


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V. MUDA of PROCESSING

Processing refers to

the modifying to a workpiece or

a piece of information

in order to add value to it and

send it to the next process.

Muda can be caused by:

1. Weaknesses in the technology used (equipment, jigs)

2. Weakness in the design of products

3. Weakness in design of process flow

4. Failure to synchronise process (over control ofspecification at some stations, relaxed in others)


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VI. MUDA of WAITING

The worker cannot do his value added

work due to idling

his hands, body are idle

interruption that stops him continuing

his work

workers are available for and want towork but is left waiting


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VI. MUDA of WAITING

Muda can happen due to

line in-balance (the previous process cannot

pass parts to him)

the lack of fresh parts coming to his process

machine or jigs breakdown

the workers job is only to monitorautomatic

machines performing the value added job

Workers waiting while a machine is doing the

value added job. This is most difficult to

detect. wrong parts are delivered

line equipment set up for model changes


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VII. MUDA ofTRANSPORT

Transport is essential part of operationsBUT it does not add any value to products

no matter how many times or

how fast we do it

Isolated Island process - streamline!

Reducing transportation reduces

excess inventory,

waiting,

non-value added packing, data and mixing control,

equipment and materials etc.

Other MUDAs!


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GEMBA KAIZEN will reduce theMUDAs through applying theKaizen Cycle continuously :

MUDA ofoverproduction

MUDA ofinventory MUDA ofrepairs / rejects

MUDA ofmotion

MUDA ofprocessing

MUDA ofwaiting

MUDA oftransport


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GEMBA KAIZEN

GEMBA means the real place

the place where real action occurs


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GEMBA MANAGEMENT Relationship

Gemba

provides product or service that satisfies customers

achieves goals set by management

the place to achieve real improvements

kaizen is effectively implemented

Management takes initiative in establishing policies, targets and

priorities

accountable for the outcome /success

allocating resources such as manpower and money

exercise leadership

decides the most urgently kaizen strategy

listen and learn from employees in gemba

provide most appropriate help to actual problems


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1. When a problem arises (abnormality) goto gemba first

2. Check the gembutsu(relevant objects)

3. Take temporary countermeasures on thespot

4. Find the root cause

5. Standardize to prevent recurrence

The Golden Rules

of

Gemba Management


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1. Go toGemba First

The Gemba Circle training method

Nothing else matters.

When you have a concern with

Gemba,

You must go there first.

All other action is futile (MUDA)


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2. Check theGembutsu

Gembutsu means something physical, tangible

Broken down machine,

rejected product,

tool damaged,

returned goods,

a complaining customer

Gembutsu in Gemba find the actual root cause

listen to gembutsu

Let the gembutsu speak to meUsing the 5 senses plus commonsense

Be proud of the scars on your hands Soichiro Honda


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3. TakeTemporary Countermeasure

on the Spot

You can always take temporary

countermeasures to keep the process moving.

Every second lost to production is lost forever.

This is a terrible MUDA.

Do it now. Do it right away!

Remember who and where the money earners

are!!


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4. Find the RootCause

o Use simple analytical tools and common sensesolutions

e.g. 5 WHYs

o Deeperstatistical tools will be needed morecomplicated problem

o Gemba can provide the necessary information

Do not jump to conclusions too fast

Do not make a simple problem into a

complicated crisiso Solutions to be gotten from gemba (relevant

application)


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4. 5 WHYs

o Why are you throwing sawdust onthe floor?Because the floor is slippery and unsafe

o Why is it slippery and unsafe?Because there is oil on it

o Why is there oil on it?Because the pump parts are leaking

o Why is it leaking?Because the oil is leaking from the pumpcouplings

o Why is it dripping?Because the rubber seals are not fiittedproperly.


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5. Standardize to prevent Recurrence

Once a problem has been solves, standardise thenew procedure

All similar problem area in gemba should nowfollow the new standard way of working.

Critical points and processes should bedocumented as standards to avoidmisunderstanding.

Standardisation is one way for all in gemba tobenefit from the Kaizen improvements.

Strategy of KAIZEN towards EXCELLENCEStrategy of KAIZEN towards EXCELLENCE


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Customer

driven

People

Culture

Leadership

Involvement

Commitment

QQ

CC

DD

Concepts

Systems ToolsHR

Strategy of KAIZEN towards EXCELLENCEStrategy of KAIZEN towards EXCELLENCE

Improvement & Maintenance

Process Focused

Quality First Management By Data

Next Process Is Your Customer

PDCA/SDCA

TQC/CWQC/TQM

TPS

TPM

Policy Deployment

Suggestion System QIT/ICC/SGA/QCC

5S

7QC Tools

Kanban

Cell Manufacturing

Single Piece Flow

SMED

SPC

Takt Time

Documents

Kaizen Continuous Improvement Philosophy